since the folders are just not yet created. you could just add the missing folders in the c:\users\piblic\documents\winuae
dont put your files in C:\Program Files (x86)\WinUAE
use the path "c:\users\public\documents\winuae" for your config and emulation files.
in the latter you dont need admin privileges to write to.
just change your path for winuae in the config window ( f12) -> Paths

lua is a programing language, kind of scripts, which will get interpreted by a host application (winuae) when it does have an interpreter build in. those recording , i think, refer to those video you can make while you emulate something.
(config - F12 -> Output).
just create the missing folders and you'll be fine - and it's adviced to use the path:
"c:\users\public\documents\winuae"

#1) but in case your emulation/winuae is working the way you set it up - beside the missing folders , leave it as it is.
sort of *never change a working system*
just add the missing folders, and you'll be fine